The ECB Cries Uncle

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Portugal more or less declared bankruptcy yesterday. Here’s how the ECB responded today:

Worried about rising prices, the European Central Bank raised its benchmark interest rate for the first time since 2008 on Thursday, risking damage to weaker economies like Portugal, which only a day earlier became the third country to request an international bailout….The bank president, Jean-Claude Trichet, and other members of the governing council had warned repeatedly over the past month about the risk that higher oil prices would fuel a general increase in prices.

This is nuts. Inflation is a monetary phenomenon. Surging oil prices are a supply and demand phenomenon. Oil prices aren’t going up because there’s too much money in circulation, they’re going up because supply is limited, there’s unrest in the Middle East, and demand keeps rising inexorably upward.

I have some sympathy for bond hawks who say that although bond prices aren’t currently showing any fear of either inflation or financial collapse, markets can turn quickly and it’s best to keep from ever getting to the point when that turn might happen. Still, a little more inflation right now would be a good thing, not a bad one, and economic growth would be a really good thing. Anything that gets in the way of growth is just begging for bigger trouble down the road. This panicky action from Trichet is a big mistake.

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Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

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Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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